Offering your customers the option to pay by credit card is crucial for your business. Especially in the case of online businesses, card payment is the only option customers have. Third party agencies offer merchant processing services including business credit card processing. But here is the catch. While everyone is willing to support low-risk businesses, venture businesses don’t get as much support from merchant service providers to help them open a merchant account.
They are offered only by specialized service providers.
Are you a high risk trader?
You qualify for this service if your business is categorized as a high-risk business. Online businesses that fall into this category generally include those in the following areas: adult entertainment sites, those related to health and beauty, such as websites that sell weight loss, skin care, muscle enhancement, and other similar products, including nutritional and beauty supplements. Detective services, online dating sites, lottery sites, sports consulting sites, etc. are other examples of this type of business. These businesses are inherently risky for obvious reasons.
These types of merchant services are also required for high-volume businesses, as they are more susceptible to credit card fraud. Small businesses with low turnover are also considered because they can’t afford the necessary fraud detection tools.
The individual characteristics of the business/business owner are also important. Businesses that are not accredited with local trade bodies, those with poor or inconsistent credit histories, or where the business or owner has been blacklisted for any reason are considered high risk.
If you are a merchant, it will be difficult for you to obtain a merchant account, which is crucial to enable credit card transactions. Therefore, you need the assistance of merchant service providers who cater especially to the needs of these types of merchants.
High-Risk Business Services: What You Can Expect
These types of business account providers charge huge fees for their services. Business service fees are much higher than those charged to regular businesses.
To set up a regular merchant account, setup fees are often negligible or even non-existent. In the case of these types of business accounts, their high fees start from this point and include very high processing fees.
However, considering that enabling credit card payment is crucial to the success of your business, you have no choice but to give in to the demands of merchant service providers. But as always, you need to choose your service provider wisely and make sure they’re not misleading you.
How to choose a high-risk business service provider
Ask around and choose a provider with a well-established reputation in the field and who is well-reputed for the range and quality of services offered.
Choose someone who meets your specific needs. For example, depending on the nature of your business, you may need 24×7 support.
Insist on a fee breakdown and don’t sign up unless you’re convinced of the fee structure.
High risk processing services may not be a very pleasant option. But you cannot escape from it if you want to be successful in your business.